CMHC's 2015 Vancouver Housing Outlook Conference

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 2, 2015) - Canada Mortgage and Housing Corporation (CMHC) economists and market analysts shared their key insights and forecasts for the housing market at the 21^st annual CMHC Housing Outlook Conference today. CMHC experts presented to over 400 housing industry experts on economic, demographic and other factors impacting national, provincial and regional housing markets.

The average MLS® price for Canada is expected to be between $420,000 and $466,000 in 2016 and between $424,000 and $475,000 in 2017. "Other than a modest amount of overvaluation at the national level, housing market conditions are expected to remain balanced and broadly in line with key indicators such as employment, personal disposable income, mortgage rates and population growth," said Bob Dugan, Chief Economist, CMHC.

In British Columbia, housing starts are expected to remain relatively stable, ranging between 25,500 to 34,100 units in 2016 and between 24,300 and 35,500 units in 2017. "New home construction will be supported by growth in employment and population," noted Carol Frketich, BC Regional Economist, CMHC. Single-detached home starts are expected to range from 9,000 to 11,600 units in 2016 and between 8,100 to 11,500 units in 2017, with the broader range reflecting increased downside risk as mortgage interest rates rise."

In the Metro Vancouver Census Metropolitan Area (CMA), a stable level of new home construction is expected, reflecting solid population-based demand. "Rising land values and an aging housing stock will give new single-detached home construction a boost from 4,600 units in 2015 to 4,700 homes in 2016. Laneway housing will also add to the number of single-detached home starts," said Robyn Adamache, Principal Market Analyst for Vancouver. MLS® sales will cool slightly, moving closer to the long-term average level, and the average MLS® home price is expected to increase by 3.0 per cent in 2016 to $914,100. In 2017, the average price is expected to rise by a more modest 2.1 per cent, to $933,200, as activity slows in response to rising mortgage rates.

Growing demand will push house prices upward in the Fraser Valley, with prices expected to rise 4.7 per cent in 2016 and 2.9 per cent in 2017. Greater demand for single-detached houses and townhomes, which are more expensive than apartment condominiums, will also contribute to growth in prices over the forecast period.

CMHC's annual Vancouver Housing Outlook Conference helps housing market stakeholders understand trends in the marketplace, identify opportunities, and make sound business decisions. With more than 65 years of experience, consumers and the housing industry trust CMHC to deliver reliable, impartial and up-to-date housing market information.

For more information, visit www.cmhc.ca or call 1-800-668-2642.